Interesting report from Piper Jaffray today (as reported by bizjournals.com) stating that online advertising will be $81 billion by 2011.

I think that’s conservative: Overall ad market is $400-$600 billion, which says that the online piece will only be 14%-20%. I think it will be closer to 30% in 2011, or $120-$180 billion, especially as ITV (Interactive TV) kicks in.

If we use the $81 billion — and Google is 25%-40% of the market (and they will be) — this means GOOG will be a $20-$32 billion company in 2011.

If my range is correct, however, GOOG will be a $30-$72 billion company… and that’s assuming the overall ad market doesn’t grow, which isn’t the case.

As I’m fond of saying, GOOG will be a $20 billion company before anyone knows it.

When one analyst told Ballmer that he was forecasting for 6 percent growth in the Windows business for the 2008 fiscal year starting in July, the CEO laughed and said that was a "small but not tiny" number.

Hmmm. That sounds like Steve was saying that forecast wasn’t aggressive enough.